Joe Geraghty: Dayton’s health care industry drives ahead – Dayton Business Journal
Joseph Geraghty was quoted in the Dayton Business Journal, in its article titled “Dayton’s health care industry drives ahead.”
“It’s a national trend with rural hospitals slinging with major system hospitals,” said Joe Geraghty at consulting firm Conway MacKenzie’s Dayton office. “Rural hospitals are challenged in how they maintain hospitals, build facilities, keep market share over time. They continue to grow from major urban centers. It’s a real balance for rural hospitals. Their No. 1 goal is to maintain health care in their community. They’re constrained because of the costs of maintaining all of that is very expensive.”
These are transforming health care systems into “hub and spoke” models, he said. Major urban system hospitals with a lot of capital and expertise serve as the hub, and they invest in smaller locations in rural communities and give them the capital to support their operations. For these doctors, if they’re not aligning, they’re often struggling, Geraghty said, and service suffers. In extreme cases, medical practices end up being bought in distress.
“Rural hospitals need access to capital, but the supply chain as well. Hospital chains have better purchasing power and can share information technology systems and really be able to, on a partnership bases, have a lower cost for those kinds of activities,” Geraghty said. “There’s clearly a financial incentive for rural hospitals to join a network.”